3G is switching providers for its group personal pension (GPP) to reduce its annual management charge (AMC).
When the mobile phone firm introduces a new GPP, to be provided by Aviva on a commission basis in April, it will see its AMC fall from 0.8% to 0.55%.
Seth Russell, director of reward at 3G, said: “We talked to the major players with the objective of reducing the AMC so that more of [employees’ money] gets invested in the pension. For our employees, this is a big benefit.”
3G has worked with Bluefin to develop technology that will enable members to transfer from the existing pension into the new plan electronically.
The change will be launched to staff during the flexible benefits enrolment window this month. The company will take steps in May and June to educate staff about their current fund choices and help them decide whether to keep these with the scheme’s current provider Aegon or transfer them to Aviva.
3G will promote existing technologies that allow staff to receive alerts via mobile phone or email if their funds move. They can choose to set these alerts if their fund moves by any amount between 5% and 20%.
In the run-up to flex enrolment, 3G carried out an extensive communications campaign. A countdown clock has been posted on the intranet, text messages sent to staff and information posted to retail employees. The firm’s top 40 managers have been briefed on the flex scheme. Clinics and one-to-one sessions on pensions will be provided by Bluefin.
Read more news